UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3rd day of February, 2012

Essential Air Service at

SALINA, KANSAS DOCKET DOT-OST-2002-11376

under 49 U.S.C. 41731 et seq.

ORDER RE-SELECTING CARRIER

Summary

By this Order, the Department is re-selecting SeaPort Airlines Inc. (SeaPort) to provide 

Essential Air Service (EAS) at Salina, Kansas, using 9-seat Pilatus PC-12 aircraft for the

four-year period beginning April 1, 2012, through March 31, 2016, for an annual subsidy 

of $1,490,479.

1

Background

By Order 2010-3-17, March 12, 2010, the Department selected SeaPort to provide EAS at 

Salina with 18 weekly nonstop round trips to Kansas City International Airport (Kansas 

City) for the period from April 19, 2010, through March 31, 2012, for a first-year annual 

subsidy of $1,489,435, and a second-year annual subsidy of $1,493,381.

As the end of the contract was approaching, we issued Order 2011-11-1,

November 1, 2011, requesting proposals from carriers interested in providing EAS at the

community, for a new term beginning April 1, 2012. In response to that Order, we

received a proposal from only the incumbent, SeaPort.

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated 

funds.

Order: 2012-2-4

Served: February 3, 2012
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The carrier’s complete proposal and community comments may be accessed online at 

http://www.regulations.gov/ by entering Docket number DOT-OST-2002-11376 in the 

search block. 

Proposal of SeaPort

SeaPort proposed one option for a four-year term that would provide three weekday and 

three weekend nonstop round trips (18 a week) to Kansas City using 9-seat Pilatus PC-12 

aircraft for an annual subsidy of $1,490,479.

Community Comments

On November 30, 2011, we requested community comments regarding this carrierselection case. In response, we received letters from Samantha Angell, Mayor of Salina, 

and Timothy F. Rogers, Executive Director at Salina Airport Authority. Both letters 

expressed support for SeaPort’s proposal and are optimistic that the continuation of 

SeaPort’s dependable service will restore community confidence in local passenger air 

service. In addition, both Mayor Angell and Mr. Rogers were confident that passenger 

enplanements would continue to increase, thus bringing Salina’s per passenger subsidy 

below $200.

Decision

The decision is straightforward and clearly points to the re-selection of SeaPort for a new,

two-year term. The community fully supports SeaPort’s proposal and has communicated

to the Department on more than one occasion their satisfaction with the airline’s service. 

We note that SeaPort’s subsidy request is slightly less than the current subsidy. While we 

are concerned about Salina’s per passenger subsidy being over the $200 cap, we are 

encouraged by the fact that passenger enplanements have been increasing since SeaPort 

began service at Salina in 2009 (4,995 total passengers for fiscal year 2011 vs. 4,617 for 

fiscal year 2010). The community and SeaPort have demonstrated that they are committed 

to working together to increase enplanements, and the four-year term should allow for 

longer-term projects to increase ridership while providing the Department with some 

budget certainty. We will continue to monitor enplanements during the course of SeaPort’s 

contract and will take appropriate action, including possible termination of eligibility for 

subsidy under the EAS program.

We shall make this selection of SeaPort at Salina contingent upon the Department’s 

receiving properly executed certifications from the carrier that it is in compliance with the 

Department’s regulations regarding drug-free workplaces and nondiscrimination, as well as 

the regulations concerning lobbying activities.
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Carrier Fitness

49 U.S.C. 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide Essential Air Service. 

SeaPort is subject to the Department’s continuing fitness requirements, and no information 

has come to our attention that would cause us to question the carrier's fitness at this time. 

We have contacted the Federal Aviation Administration, and it has raised no concerns that 

would negatively affect our fitness findings. We therefore conclude that the carrier is 

reliable and remains fit to conduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We select SeaPort Airlines, Inc. to provide Essential Air Service at Salina, Kansas, and 

establish an annual subsidy rate of $1,490,479, as described in Appendix C; 

2. We direct SeaPort Airlines, Inc. to retain all books, records, and other source and 

summary documentation to support claims for payment, and to preserve and maintain such 

documentation in a manner that readily permits its audit and examination by 

representatives of the Department. Such documentation shall be retained for seven years 

from the service date of this Order or until the Department indicates that the records may 

be destroyed, whichever comes first. Copies of flight logs for aircraft sold or disposed of 

must be retained. The carrier may forfeit its compensation for any claim that is not 

supported under the terms of this Order;

3. We find that SeaPort Airlines, Inc. continues to be fit, willing and able to operate as a 

commuter carrier, and capable of providing reliable Essential Air Service at Salina;
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4. This docket will remain open pending further Department action; and

5. We will serve copies of this Order on the Mayor of Salina, the Executive Director of the 

Salina Airport Authority, and SeaPort Airlines, Inc.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

 
Appendix B
 Appendix C

SeaPort Airlines, Inc.

Essential Air Service to be Provided at Salina, Kansas

Effective Period: April 1, 2012, through March 31, 2016

Scheduled Service: Three weekday and weekend nonstop round trips (18 a week) to Kansas City

Aircraft: 9-seat Pilatus PC-12

Rate per Eligible Flight: $817;

1

Weekly Ceiling: $29,4122

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in 

conformance with the terms and stipulations of the rate order, including the service plans outlined in the Order and 

any other significant elements of the required service, without prior approval. The carrier understands that an 

aircraft take-off and landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only 

completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its 

flights in full conformance with the Order for a significant period, it may jeopardize its entire subsidy claim for the 

period in question. If the carrier contemplates any such changes beyond the scope of the Order during the applicable 

period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from 

the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and 

select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be 

safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether 

subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to 

which the goals of the program are met and the extent of access to the national air transportation system provided to 

the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes 

service requirements at a specific location provided for under this Order, then, at the end of the period for which the 

Department does make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease 

to provide service to that specific location without regard to any requirement for notice of such cessation. Those 

adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and the 

carrier do not constitute a total or partial reduction or cessation of payment.

Funds are not currently available for performance under this Order beyond September 30, 2012. The Department’s 

obligation for performance under this Order beyond September 30, 2012, is subject to the availability of 

appropriated funds from which payment for services can be made. No legal liability on the part of the Government

for any payment may arise for performance under this Order beyond September 30, 2012, until funds are made 

available to the Department for performance. If funds are not made available for performance beyond September 

30, 2012, the Department will provide notice in writing to the carrier.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they 

may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not 

operate to controvert the foregoing paragraph.

All claims for payment must be submitted within 60 days of the last day of service provided under this Order.

 1 Annual compensation of $1,490,479 divided by 1,825 annual departures (36 weekly departures x 52 weeks x 97.5 

percent completion).

2 36 arrivals and departures per week multiplied by $817 per flight.